Pollution Control: Policies Proposed by Economists

Clem Tisdell

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DOI: 10.2190/K0EM-0QXK-M55A-UHVL

Abstract

This paper reviews in a general fashion measures suggested by economists for the control of pollution and considers ways in which these measures can be combined with the use of pollution standards. The efficiency of measures such as taxes to control pollution, bribes for reductions in pollution and the availability and sale of pollution rights are discussed. Market-type measures such as pollution rights and uniform rates of taxation are not as efficient as some economists claim and often need to be modified for practical application. In this respect the contribution of Tietenberg seems to be of particular importance. Ways in which non-convexities in production possibilities and consumption relationships limit or rule out orthodox economic approaches to pollution control are discussed and illustrated. Uncertainty and variability of ambient conditions are also seen as limiting the applicability of traditional economic policies for pollution controls. The point is illustrated that even when emissions cannot be varied (for economic or other reasons) with ambient conditions, variability of or uncertainty of ambient conditions influences the socially optimal level of emission as a rule.

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